A FIRM once seen as one of Merseyside’s fastest growing family businesses last night became the region’s latest victim of the recession when it collapsed into administration.

The failure of Dams International means hundreds of staff are likely to lose their jobs unless a buyer is found quickly.

Paul Flint and Brian Green, partners from accountancy firm KPMG’s insolvency practice, were appointed to run the office furnishings and furniture distribution business.

The firm, owned by the Scott family, last year enjoyed annual sales of £42m but this year ran into trouble after it branched out into the logistics business.

Established by Barry Scott in 1967, the firm operates from its manufacturing base in Kirkby with a showroom in central London, and regional distribution centres in Hertfordshire, York, Glasgow and Bridgwater, Somerset.

Dams employs 327 people around the UK.

The administrators last night told the Daily Post that they expect to make approximately 180 redundancies at the firm’s headquarters in Knowsley and a further 65 at its regional depots.

The distribution business delivered furniture to homes around the country on behalf of national furniture retailers and supermarkets. Part of its service was that staff would assemble flat pack furniture for customers.

Mr Flint said: “Over the course of the last 12 months, Dams International has experienced a significant fall in turnover as a result of the economic crisis which, coupled with a failed strategic expansion into logistics, has resulted in extensive trading losses over the last year.

“Despite the firm’s restructuring efforts to date, the business has run out of cash and is now facing severe creditor pressure.

“Over the next few days, the administrators will be speaking to key customers and suppliers to assess whether we are able to trade part of the business as a going concern.

“We would also encourage any parties interested in acquiring the business and its assets to contact us as soon as possible.”

In 2005, founder Barry Scott retired from the business and handed over the running of Dams to his eldest son, Chris Scott.

In its 40 years of trading, Dams has grown from a handful of staff to a business employing 600 at its peak and operating a fleet of approximately 150 vehicles.